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morgo

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28/09/16

18:18

Post #: 19486193
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Originally posted by melenova ↑

That dump to 6c was just one very motivated seller. Illiquidity bites.

In general though, some possible reasons:
-Last two quarters have shown stagnation in the no. of rollouts per quarter. The rate is too slow and if extrapolated will take the company a very long time and lots of CR's to reach profit.
-The company will require capital soon. The last capital raise at 15c went to some very loose hands and a lot of it ended up being dumped on market at a significant discount. Motivated sellers in such an illiquid stock yields an exaggerated move.
-It's illiquid as F**k

On the first point, it seems that the the company has been doing lots of work in finding prospective markets/clients to enter pilot trials. Thus the bottleneck has been on the client side as a fair bit of time & effort is spent on these first trials. On paper this appears as very slow growth. However, when these trials are successful, Skyfii signs an MSA agreement for rolling out the rest of the clients properties/stores. These rollouts can happen at a substantially faster rate. There is good reason to believe that the next couple quarters will show this. It is worth noting too that Skyfii has had 90% conversion rate so far on these pilots.

As we saw in the annual report, there is plenty of potential and gleaning what you can off the internet the company seems to be progressing well and it is reasonable to suggest 'the tipping point' of growth is not far off.

The CR potential will likely continue to hang around like a bad smell, deterring potential investors until it is resolved and/or the company produces news which significantly de-risks it. This next quarterly will be important in determining the course of the CR. The sentiment could change rather suddenly.

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thank you for the info

SKF Price at posting: 6.3¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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thank you for the info

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